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Mortgage default insurance

How do I know if my mortgage is default insured?

 If  you still have the commitment letter that you would have received when  you originally took your mortgage, it should be stated on the letter if  the mortgage is insured, but if not, aside from contacting your current  lender to find out, here are a few ways you may be able to tell if it is  insured or not:


1)  If you purchased your home with a down payment of less than 20% and  have not refinanced the mortgage since you purchased, it would likely be  insured.  Even if you switched your mortgage to a different lender at  the end of a term, as long as there was no increase to the mortgage, it  is likely insured.


2)  If you purchased with a down payment 20% or more, refinanced the  mortgage at any point, if your mortgage has a Home Equity Line of Credit  component to it, or your mortgage is with a non-federally regulated  lender, it is not likely insured.


There are 3 default insurers in Canada.  The most well known is the Canada Mortgage and Housing Corporation (CMHC), but lenders also insure mortgages with  Genworth Canada, or  Canada Guaranty.

Default insurers

What is default insurance

 In  this video Jeff Laberge explains all you need to know about default insurance . 

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